USDA announces sign-up for disaster assistance

Cattle Market & Farm Reports, Editorials
Sep 3, 2007
by WLJ


USDA recently announced sign-up dates for the new Livestock Compensation Program (LCP), Livestock Indemnity Program (LIP) and Crop Disaster Program (CDP). The three ad hoc disaster programs provide benefits to farmers and ranchers who suffered losses caused by natural disasters in recent years.


Eligible ranchers and other livestock producers can apply to receive benefits under LCP and LIP beginning Sept. 10, 2007. Eligible farmers can sign up for CDP beginning Oct. 15, 2007, if they suffered quantity losses to their crops. USDA will announce and conduct CDP sign-up for quality losses as soon as possible.


LCP compensates livestock producers for feed losses occurring between Jan.1, 2005, and Feb. 28, 2007, due to a natural disaster. This can include producers who suffered losses resulting from blizzards that started in 2006 and continued into January 2007. Livestock producers may elect to receive compensation for calendar year 2007 grazing season losses that are attributable to wildfire natural disasters occurring during the applicable period as determined by the Secretary of Agriculture. Producers in primary counties declared secretarial disaster areas or certain counties declared presidential disaster areas between Jan. 1, 2005, and Feb. 28, 2007, are eligible as are producers located in counties contiguous to those counties. Also, producers in a primary (or contiguous) county that received an Administrator’s Physical Loss Notice directly associated with a disaster declaration made by President Bush may also be eligible. Producers incurring a loss in more than one of the 2005, 2006 or 2007 calendar years must choose only one year for which they want to apply for benefits.


LIP compensates livestock producers for livestock losses between Jan. 1, 2005, and Feb. 28, 2007, that resulted from natural disasters, including losses due to blizzards that started in 2006 and continued into January 2007. Producers in primary counties declared secretarial disaster areas or certain counties declared presidential disaster areas between Jan.1, 2005, and Feb. 28, 2007, are eligible as are producers located in counties contiguous to those counties. Also, producers in a primary (or contiguous) county that received an Administrator’s Physical Loss Notice directly associated with a disaster declaration made by President Bush may also be eligible. Producers incurring eligible livestock losses in more than one of the 2005, 2006 or 2007 calendar years must choose only one year for which they want to apply for benefits.


CDP provides benefits to farmers who suffered quantity and quality losses to 2005, 2006, or 2007 crops from natural disasters if the crop was planted before Feb. 28, 2007, or, in the case of prevented plantings, for crops that would have been planted before Feb. 28, 2007. Producers who incurred qualifying losses in 2005, 2006 or 2007 must choose only one year to apply for benefits. Producers may apply for benefits for losses to multiple commodities as long as the losses occurred in the same crop year. Only producers who obtained crop insurance coverage or coverage under the Noninsured Crop Disaster Assistance Program for the year of loss will be eligible for CDP benefits. Producers must have suffered quantity losses in excess of 35 percent to be eligible for CDP.


On May 25, 2007, President George W. Bush signed into law the “U.S. Troop Readiness, Veteran’s Care, Katrina Recovery, and Iraq Accountability Appropriations Act.” The 2007 Act authorizes LCP, LIP and CDP. It also authorizes funding for the Emergency Forestry Conservation Reserve Program (EFCRP), Emergency Conservation Program (ECP) and Dairy Disaster Assistance Program III (DDAP-III). USDA recently announced sign-up for EFCRP and the distribution of funds to 18 states under ECP. USDA will announce and conduct sign-up for DDAP-III as soon as possible. USDA’s Farm Service Agency is charged with administering the programs.

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